Bumble Explores Sale with Morgan Stanley as Q1 Revenue Drops 14.1%
BMBL•Bumble is exploring a sale process led by Morgan Stanley, driving shares up nearly 15% intraday before settling 3% higher, while Blackstone holds a 22.9% stake and short interest is at a two-year low of 8%. Q1 revenue fell 14.1% to $212.4M and Q2 revenue is guided at $205M–$213M.
1. Sale Process Potential
Bumble has engaged Morgan Stanley to evaluate strategic alternatives, potentially including a sale at around a 20% premium debated by investors. The review is intended to counteract slowing growth in the online dating market and redefine shareholder value.
2. Financial Declines and Guidance
In Q1 fiscal 2026, Bumble reported total revenue of $212.4 million, down 14.1% year-over-year, with core app revenue of $172.7 million down 14.4% and paying users falling to 3.2 million from 4 million. Management projects Q2 revenue between $205 million and $213 million, versus $248.2 million in the prior-year period.
3. Trading Reaction and Ownership
Shares surged nearly 15% on the sale report before settling about 3% higher, while rival Match Group shares fell 2.5%. Blackstone owns 22.9% of the company and short interest has declined to 8%, marking the lowest level in over two years.
